Kotak Mahindra Bank 2nd quarter net jumps 27% to Rs 2,184 crore2Photo© financialexpress.com

Kotak Mahindra Bank 2nd quarter net jumps 27% to Rs 2,184 crore

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Kotak Mahindra Bank’s net profit grew 26.7% year-on-year (y-o-y) during the September quarter to Rs 2,184.5 crore, driven by interest income and other income. Provisions during the quarter declined 9.6% to Rs 369 crore. Operating profit rose 31% y-o-y to Rs 3,297.5 crore, even though advances fell 4% compared to last year.

The lender’s net interest income (NII) increased 17% y-o-y to Rs 3,913 crore. Sequentially, NII increased 5%, compared to Rs 3,723 crore. Other income increased 18.6% y-o-y and a whopping 88% quarter-on-quarter to Rs 1,452 crore. Excluding fees and services, other income grew six times to Rs 392 crore during the quarter under review, from Rs 62 crore in the year-ago period.

The provision coverage ratio stood at 75.6% as on September 30, 2020. The asset quality showed an improvement in the September quarter, with gross NPA ratio improving 15 basis points (bps) to 2.55%, compared to 2.7% in the previous quarter. Similarly, the net NPA ratio came down 23 bps to 0.64% from 0.87% in the June quarter.